BOSTON, July 16 /PRNewswire-FirstCall/ -- Wainwright Bank &
Trust Company (NASDAQ:WAIN) reported 2007 second quarter
consolidated net income of $1,718,000 and diluted earnings per
share of $.20 ($.22 per basic share). This compares to consolidated
net income of $1,708,000 and diluted earnings per share of $.20
($.21 per basic share) for the quarter ended June 30, 2006.
Consolidated net income for the six months ended June 30, 2007 is
$3,557,000, $164,000 higher than the previous six month record
earnings of $3,393,000 for the same prior year period. Diluted
earnings per share were $.41 for the six months ended June 30, 2007
($.45 per basic share) compared to diluted earnings per share of
$.39 for the six months ended June 30, 2006 ($.42 per basic share).
All prior period earnings per share amounts have been adjusted to
reflect the 5% common stock dividend declared and paid in the
second quarter of 2007. The Bank's average outstanding loan
balances grew $68 million or 12% from the second quarter of 2006 to
$663 million in the second quarter of 2007. The commercial loan
portfolio, including higher yielding commercial real estate and
construction loans, increased by $65 million and the residential
real estate portfolio grew $5 million. Jan A. Miller, President and
CEO stated, "In this competitive market, we have been able to
record solid loan growth while maintaining our high credit
standards. Our commercial loan portfolio has increased 19% in the
last 12 months. In addition, our deposit base has also seen some
recent growth in core transaction accounts. The relatively flat
yield curve and the accompanying margin compression continues to
impede our net interest income, despite the success we have had in
growing the balance sheet." Average deposits increased $12 million
from the second quarter of 2006 to the second quarter of 2007. As
market rates have risen over the past year, deposit customers have
migrated away from money market and savings accounts, which are
down $27 million, and into higher yielding certificates of deposit,
which are up $25 million. Demand deposits and NOW account balances
are up $14 million or 18%. In addition to the increase in deposits,
an increase in borrowed funds of $38 million was used to help fund
the growth in the loan portfolio. Net interest income was $6.6
million in the second quarter of 2007 compared to $7.1 million in
the second quarter of 2006. Continuing margin compression has
reduced the Bank's net interest yield to 3.19% in the second
quarter of 2007 compared to 3.71% in the second quarter of 2006.
The provision for credit losses was $250,000 and $225,000 for the
six months ended June 30, 2007 and 2006, respectively. The increase
is entirely attributable to loan portfolio growth. The reserve for
credit losses was $7,237,000, $6,984,000, and $6,284,000
representing 1.07%, 1.10% and 1.05% of total loans at June 30,
2007, December 31, 2006, and June 30, 2006, respectively. The Bank
had net recoveries of $3,000 in the first two quarters of 2007
compared to net recoveries of $4,000 in the first two quarters of
2006. The Bank had no nonaccrual loans at June 30, 2007 and 2006.
There was one nonaccrual loan for $86,000 at December 31, 2006.
Total noninterest income was $3.2 million and $2.8 million for the
six months ended June 30, 2007 and 2006, respectively. In the first
quarter of 2007 the Bank sold one property held for investment
purposes and recorded an $850,000 gain on the sale. The rental
income associated with this property was $123,000 in the first two
quarters of 2006. The 2006 period benefited from a $240,000 award
from the Community Development Financial Institutions Fund of the
U. S. Treasury. The award was provided in recognition of the Bank's
lending activities in distressed communities. In addition, there
were insignificant increases in investment management fees, bank
owned life insurance income, and loan fees in the amounts of
$67,000, $27,000, and $17,000, respectively, which were offset by
decreases in net security gains and deposit service charges of
$88,000 and $61,000, respectively. Total operating expenses were
$11.5 million and $12.0 million for the six months ended June 30,
2007 and 2006, respectively. Occupancy and equipment costs were
down $175,000 due to lower depreciation charges, maintenance costs,
and property taxes. Advertising and promotional costs were reduced
by $94,000 to $224,000 in the first two quarters of 2007. The Bank
recorded non-cash charges of $237,000 in the first two quarters of
2007 compared to $318,000 in the first two quarters of 2006 related
to equity investments in affordable housing projects. These pretax
charges will be more than offset by tax credits available to the
Bank. These community development investments are part of the
Bank's nationally recognized commitment to community development
activities. The Bank's current CRA rating is "Outstanding". In an
earlier period, the Bank sold its credit card portfolio. The first
two quarters of 2006 included $74,000 of final processing costs
related to the sold portfolio. Partially offsetting the above was a
$150,000 increase (+2%) in compensation costs due to normal merit
raises and higher medical cost as well as a $50,000 increase in
debit and ATM card expenses. With Boston branches in the Financial
District, Back Bay/South End, Jamaica Plain, Cambridge branches
within Harvard Square, Kendall Square, Central Square and the Fresh
Pond Mall, its Watertown, Somerville, Newton, and Brookline
branches, Wainwright is strategically positioned to provide
consumer and commercial mortgages, loans, and deposit services to
individuals, families, businesses, and non-profit organizations.
This Press Release contains statements relating to future results
of the Bank (including certain projections and business trends)
that are considered "forward-looking statements" as defined in the
Private Securities Legislation Reform Act of 1995. Actual results
may differ materially from those projected as a result of certain
risks and uncertainties, including but not limited to changes in
political and economic conditions, interest rate fluctuations,
competitive product and pricing pressures within the Bank's market,
bond market fluctuations, personal and corporate customers'
bankruptcies, and inflation, as well as other risks and
uncertainties. FINANCIAL HIGHLIGHTS: (dollars in thousands) Three
months ended June 30, 2007 2006 Net interest income $ 6,578 $ 7,136
Provision for credit losses -- 100 Noninterest income 1,292 1,258
Noninterest expense 5,668 5,938 Income before taxes 2,202 2,356
Income tax provision 484 648 Net income 1,718 1,708 Net income
available to common shareholders 1,643 1,633 Earnings per share:
Basic $ 0.22 $ 0.21 Diluted $ 0.20 $ 0.20 Return on shareholders'
equity (annualized) 9.78% 10.38% Return on assets (annualized)
0.79% 0.84% Net interest yield 3.19% 3.71% Weighted average common
shares outstanding: Basic 7,576,788 7,691,552 Diluted 8,574,251
8,686,110 FINANCIAL HIGHLIGHTS: (dollars in thousands) Six months
ended June 30, 2007 2006 Net interest income $ 13,207 $ 14,107
Provision for credit losses 250 225 Noninterest income 3,211 2,760
Other noninterest expense 11,481 11,954 Income before taxes 4,687
4,688 Income tax provision 1,130 1,295 Net income 3,557 3,393 Net
income available to common shareholders 3,407 3,243 Earnings per
share: Basic $ 0.45 $ 0.42 Diluted $0.41 $ 0.39 Return on
shareholders' equity (annualized) 10.25% 10.33% Return on assets
(annualized) 0.84% 0.85% Net interest yield 3.30% 3.73% Weighted
average common shares outstanding: Basic 7,584,899 7,714,985
Diluted 8,581,051 8,710,321 at June 30, 2007 and 2006 Total Assets
$ 882,736 $ 791,995 Total Loans 678,156 598,839 Total Investments
137,992 118,213 Total Deposits 621,264 598,208 Shareholders' Equity
69,399 65,137 Book Value Per Common Share $ 8.18 $ 7.97 James J.
Barrett Senior VP and Chief Financial Officer Tel: (617) 478-4000
Fax: (617) 439-4854 Website: http://www.wainwrightbank.com/
DATASOURCE: Wainwright Bank & Trust Company CONTACT: James J.
Barrett, Senior VP and Chief Financial Officer of Wainwright Bank
& Trust Company, +1-617-478-4000, or fax, +1-617-439-4854 Web
site: http://www.wainwrightbank.com/
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